Company Announcements

Crescent Capital BDC, Inc. Reports Second Quarter 2024 Earnings Results; Declares a Third Quarter Base Dividend of $0.42 Per Share, and a Second Quarter Supplemental Dividend of $0.09 Per Share

Source: GlobeNewswire
Crescent Capital BDC, Inc. Reports Second Quarter 2024 Earnings Results; Declares a Third Quarter Base Dividend of $0.42 Per Share, and a Second Quarter Supplemental Dividend of $0.09 Per Share

LOS ANGELES, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.59 per share and net income of $0.55 per share for the quarter ended June 30, 2024. Net asset value per share increased to $20.30 compared to $20.28 as of March 31, 2024.

Dividend Declarations  

The Company’s Board of Directors (the “Board”) declared a third quarter 2024 regular cash dividend of $0.42 per share to stockholders of record as of September 30, 2024, payable on October 15, 2024. The Board also announced a second quarter 2024 supplemental cash dividend of $0.09 per share to stockholders of record as of August 31, 2024, payable on September 16, 2024.


Selected Financial Highlights
($ in millions, except per share amounts)
 As of and for the three months ended  
 June 30, 2024  March 31, 2024  June 30, 2023  
Investments, at fair value $ 1,610.8  $ 1,563.3  $ 1,581.1  
Total assets $ 1,672.4  $ 1,620.4  $ 1,624.6  
Total net assets $ 752.4  $ 751.7  $ 725.8  
Net asset value per share $ 20.30  $ 20.28  $ 19.58  
              
Investment income $ 48.9  $ 50.4  $ 46.7  
Net investment income $ 21.7  $ 23.4  $ 20.6  
Net realized gains (losses), net of taxes $ (4.1) $ (0.2) $ (6.6) 
Net change in unrealized gains (losses), net of taxes $ 2.8  $ 4.9  $ 8.6  
Net increase (decrease) in net assets resulting from operations $ 20.4  $ 28.0  $ 22.6  
              
Net investment income per share $ 0.59  $ 0.63  $ 0.56  
Net realized gains (losses) per share, net of taxes $ (0.11) $ (0.00) $ (0.18) 
Net change in unrealized gains (losses) per share, net of taxes $ 0.07  $ 0.13  $ 0.23  
Net increase (decrease) in net assets resulting from operations per share $ 0.55  $ 0.76  $ 0.61  
Regular distributions paid per share $ 0.42  $ 0.41  $ 0.41  
Supplemental distributions paid per share $ 0.11  $ 0.10    -  
              
Weighted average yield on income producing securities (at cost)1   12.2%   12.3%   11.7% 
Percentage of debt investments at floating rates   96.9%   97.5%   98.6% 


Portfolio & Investment Activity

As of June 30, 2024 and December 31, 2023, the Company had investments in 183 and 186 portfolio companies with an aggregate fair value of $1,610.8 and $1,582.1 million, respectively. The portfolio at fair value was comprised of the following asset types:

Portfolio Asset Types:                
  As of  
$ in millions June 30, 2024   December 31, 2023  
Investment Type Fair Value  Percentage   Fair Value  Percentage  
Senior secured first lien $ 432.9   26.8 % $ 429.2   27.0 %
Unitranche first lien2   1,005.3   62.4     973.9   61.5  
Unitranche first lien - last out2   5.6   0.3     13.5   0.9  
Senior secured second lien   49.5   3.1     58.2   3.7  
Unsecured debt   15.6   1.0     4.1   0.3  
Equity & other   57.2   3.6     50.1   3.2  
LLC/LP equity interests   44.7   2.8     53.1   3.4  
Total investments $ 1,610.8   100.0 % $ 1,582.1   100.0 %


For the quarter ended June 30, 2024, the Company invested $119.3 million across six new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $73.4 million in aggregate exits, sales and repayments. For the quarter ended March 31, 2024, the Company invested $73.9 million across seven new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $98.4 million in aggregate exits, sales and repayments.

Results of Operations

For the quarter ended June 30, 2024 and 2023, investment income was $48.9 million and $46.7 million, respectively. The increase in investment income was largely the result of net funding activity and an increase in reference rates. Net expenses, including income and excise taxes, totaled $27.2 million and $26.1 million for the quarter ended June 30, 2024 and 2023, respectively. The increase in net expenses was primarily due to an increase in reference rates which increased the Company's weighted average interest rate on debt outstanding.

Liquidity and Capital Resources

As of June 30, 2024, the Company had $36.1 million in cash and cash equivalents and restricted cash and $293.8 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average cost of debt on the Company’s debt outstanding as of June 30, 2024 was 7.26%.

The Company’s debt to equity ratio was 1.18x as of June 30, 2024.

Conference Call

The Company will host a webcast/conference call on Tuesday, August 13, 2024 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended June 30, 2024. Please visit Crescent BDC’s webcast link located on the Events & Presentations page of the Investor Relations section of Crescent BDC’s website for a slide presentation that complements the earnings conference call.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDC’s website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing the following number:

Toll Free: (800) 267-6316
Conference ID: CRESCENT

All callers will need to reference the Conference ID once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.

Endnotes

Note: Numbers may not sum due to rounding.

1)   Yield includes performing debt and other income producing investments (excluding investments on non-accrual).

2)   Unitranche loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.


Crescent Capital BDC, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands except share and per share data)

 As of
June 30, 2024
  As of
December 31, 2023
 
Assets     
Investments, at fair value     
Non-controlled non-affiliated investments (cost of$1,493,976 and $1,469,251, respectively)$1,501,420  $1,465,537 
Non-controlled affiliated investments (cost of $54,294 and $56,084, respectively) 52,023   52,619 
Controlled investments (cost of $64,619 and $67,353, respectively) 57,332   63,919 
Cash and cash equivalents 11,018   7,780 
Restricted cash and cash equivalents 25,124   16,690 
Interest and dividend receivable 16,089   14,000 
Receivable from unsettled transactions 2,549   251 
Unrealized appreciation on foreign currency forward contracts 2,765   5,128 
Deferred tax assets 939   114 
Other assets 3,173   1,341 
Total assets$1,672,432  $1,627,379 
      
Liabilities     
Debt (net of deferred financing costs of $7,903 and $7,138)$879,934  $844,783 
Distributions payable 15,566   15,195 
Interest and other debt financing costs payable 11,038   10,900 
Management fees payable 5,001   5,026 
Incentive fees payable 4,603   4,770 
Deferred tax liabilities 883   578 
Unrealized depreciation on foreign currency forward contracts 42   84 
Accrued expenses and other liabilities 2,925   3,449 
Total liabilities$919,992  $884,785 
      
Net assets     
Preferred stock, par value $0.001 per share (10,000 shares authorized,
zero outstanding, respectively)
$-  $- 
Common stock, par value $0.001 per share (200,000,000 shares authorized,
37,061,547 and 30,887,360 shares issued and outstanding, respectively)
 37   37 
Paid-in capital in excess of par value 965,895   788,299 
Accumulated earnings (loss) (213,492)  (45,742)
Total net assets$752,440  $742,594 
Total liabilities and net assets$1,672,432  $1,627,379 
Net asset value per share$20.30  $20.04 


Crescent Capital BDC, Inc.
Consolidated Statements of Operations
(in thousands except share and per share data)
(Unaudited)
                 
 For the three months ended
June 30,
  For the six months ended
June 30,
 
   2024   2023   2024   2023 
Investment Income:            
From non-controlled non-affiliated investments:            
Interest income $41,973  $41,255  $85,536  $75,501 
Paid-in-kind interest  2,060   650   3,215   1,268 
Dividend income  2   75   395   79 
Other income  779   181   1,667   228 
From non-controlled affiliated investments:            
Interest income  1,099   740   1,791   1,352 
Paid-in-kind interest  67   186   509   235 
Dividend income     551   287   1,179 
Other income  16   149   16   149 
From controlled investments:            
Interest income  312   154   611   320 
Paid-in-kind interest           192 
Dividend income  2,640   2,800   5,280   5,520 
Other income  3      5    
Total investment income  48,951   46,741   99,312   86,023 
             
Expenses:            
Interest and other debt financing costs  15,931   15,273   31,535   27,642 
Management fees  5,034   5,010   10,014   9,468 
Income based incentive fees  4,603   4,349   9,541   8,041 
Professional fees  451   427   897   737 
Directors’ fees  151   138   308   306 
Other general and administrative expenses  678   753   1,305   1,478 
Total expenses  26,848   25,950   53,600   47,672 
Management fees waiver  (33)  (50)  (71)  (96)
Income based incentive fees waiver     (71)  (36)  (159)
Net expenses  26,815   25,829   53,493   47,417 
Net investment income before taxes  22,136   20,912   45,819   38,606 
(Benefit) provision for income and excise taxes  433   340   800   541 
Net investment income  21,703   20,572   45,019   38,065 
Net realized and unrealized gains (losses) on investments:            
Net realized gain (loss) on:            
Non-controlled non-affiliated investments  (5,332)  (6,494)  (6,935)  (6,243)
Foreign currency transactions  (508)  (58)  (519)  (58)
Foreign currency forward contracts  1,776      3,223    
Net change in unrealized appreciation (depreciation) on:            
Non-controlled non-affiliated investments and foreign currency translation  7,191   10,010   12,061   4,456 
Non-controlled affiliated investments  966   174   1,194   539 
Controlled investments  (3,628)  (1,641)  (3,853)  (5,970)
Foreign currency forward contracts  (1,964)  (578)  (2,320)  (1,239)
Net realized and unrealized gains (losses) on investments  (1,499)  1,413   2,851   (8,515)
Benefit (provision) for taxes on realized gain on investments           252 
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments  181   595   520   555 
Net increase (decrease) in net assets resulting from operations $20,385  $22,580  $48,390  $30,357 
             
Per common share data:            
Net increase (decrease) in net assets resulting from operations per share (basic and diluted): $0.55  $0.61  $1.31  $0.87 
Net investment income per share (basic and diluted): $0.59  $0.56  $1.21  $1.09 
Weighted average shares outstanding (basic and diluted):  37,061,547   37,061,547   37,061,547   34,776,074 


About Crescent BDC

Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent. Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visit www.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

About Crescent Capital Group

Crescent is a global credit investment manager with over $42 billion of assets under management. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, Chicago and London with more than 225 employees globally. Crescent is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information about Crescent, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

Contact:

Dan McMahon
daniel.mcmahon@crescentcap.com        
212-364-0149
        
Forward-Looking Statements

This press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDC’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in Crescent BDC’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment adviser or its affiliates; (13) the ability of our investment adviser to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.

Crescent BDC’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC, identifies additional factors that can affect forward-looking statements.

Other Information

The information in this press release is summary information only and should be read in conjunction with Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 21, 2024, as well as Crescent BDC’s other reports filed with the SEC. A copy of Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, Crescent BDC’s quarterly reports on Form 10-Q and Crescent BDC’s other reports filed with the SEC can be found on Crescent BDC’s website at www.crescentbdc.com and the SEC’s website at www.sec.gov.